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Consumer interest in electric vehicles is falling, per AAA
Survey also finds respondents prefer hybrids as alternative A new survey from AAA finds consumers’ interest in buying a fully electric car is declining. Only about one in five adults surveyed (18 percent) say they’d be “very likely” or “likely” to buy a new or used electric vehicle (EV) (not a hybrid), down […]
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A new survey from AAA finds consumers’ interest in buying a fully electric car is declining.
Only about one in five adults surveyed (18 percent) say they’d be “very likely” or “likely” to buy a new or used electric vehicle (EV) (not a hybrid), down from 23 percent last year, according to the most recent annual consumer survey on EVs by AAA, which the organization released on June 6.
The headline on the AAA announcement about the survey is “Is the EV Hype Over?”
“Even more revealing,” 63 percent of respondents said they were “unlikely or very unlikely” to purchase an EV for their next car purchase.
“Early adopters who wanted an EV already have one,” Greg Brannon, director of automotive research at AAA, said in the announcement. “The remaining group of people who have yet to adopt EVs consider the practicality, cost, convenience, and ownership experience, and for some, those are big enough hurdles to keep them from making the jump to fully electric.”
AAA found the main hesitations in purchasing an EV continue to be cost, lack of convenient charging options, and anxiety about range (the number of miles they can drive before needing a charge). Three in 10 also cited the inability to install a charging station where they live.
The AAA survey findings are consistent with numerous media stories over the last year that have reported on declining consumer demand for EVs, inventory of electric cars piling up on dealers’ lots, and car manufacturers cutting EV production plans. For example, General Motors on June 12 cut its expected sales and planned production of all-electric vehicles this year, as EV adoption is happening slower than expected in the U.S., according to a CNBC story that day.
However, hybrid options could “bridge these gaps, broadening consumer interest in owning an EV,” AAA contended in its survey.
AAA’s report also found that nearly one in three U.S. adults (31 percent) say they would be “very likely” or “likely” to buy a hybrid. Access to a hybrid vehicle “lessens the anxiety” for consumers because it allows people to enjoy the benefits of electrification without feeling like they are disrupting their current lifestyle or travel plans (longer distance driving, less charging options, etc.), the association noted.
“Deciding to make the leap to [fully] electric may feel overwhelming for many consumers, and a hybrid option may be the way to bridge this gap,” Brannon said. “Consumer demand will ultimately dictate the future, and my prediction is that we will have a mix of EVs, hybrids, and internal combustion vehicles in dealerships and on the roads in the US for many decades ahead.”
To help educate the public, AAA says it conducts ongoing research on EVs, including consumer-sentiment surveys; testing to determine factors impacting electric-vehicle range; the true cost of electric-vehicle ownership; and a survey on consumers’ experience with going electric.
AAA also says it has a range of resources and services for EV owners, those interested in making the switch, or those who want to try a rental.
The AAA survey was conducted from April 4-8 of this year, using a probability-based panel designed to be representative of the U.S. household population overall. The panel provides sample coverage of about 97 percent of the U.S. household population. Most surveys were completed online, but consumers without web access were surveyed over the phone.
A total of 1,152 interviews were completed among U.S. adults, 18 years of age or older. The margin of error for the study overall is plus or minus 4 percent at the 95 percent confidence level. Smaller subgroups have larger error margins, AAA said.
Moyer Carriage Lofts open on Syracuse’s North Side
$55 million renovation project recently wrapped up SYRACUSE — The building that once operated as the Moyer Carriage and Car Factory on Syracuse’s North Side is now a 128-unit, mixed-use, affordable and supportive housing development. It’s the building complex that’s known for the shell of a red
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SYRACUSE — The building that once operated as the Moyer Carriage and Car Factory on Syracuse’s North Side is now a 128-unit, mixed-use, affordable and supportive housing development.
It’s the building complex that’s known for the shell of a red house on its roof.
New York State Homes and Community Renewal (HCR), along with elected officials and community leaders, formally opened the $55 million Moyer Carriage Lofts project on May 30.
All 128 apartments are “affordable” for households earning at or below 60 percent of the area median income, the office of Gov. Kathy Hochul said in its announcement.
The development includes 50 units with supportive services provided by Catholic Charities of Onondaga County.
Rental and operating subsidies for these units will be funded through an Empire State Supportive Housing Initiative award administered by the New York State Office of Mental Health, per Hochul’s office.
Housing Visions and Redev CNY LLC, both of Syracuse, co-developed the Moyer Carriage Lofts.
The development included the extensive rehabilitation of the interior and exterior of the historic structure. The rehabilitated buildings were also designed to meet criteria for Enterprise Green Communities certification, Hochul’s office said. Environmentally sustainable features include low-flow fixtures, all LED (light-emitting diode) lighting, and Energy Star appliances.
Participation in the state’s Brownfield Cleanup Program allowed site cleanup to be performed at the same time as site redevelopment. Cleanup activities included removal of contaminated soil and treatment of contaminated groundwater, which required construction of a stabilization system to preserve the exterior of the historic building.
State financing includes $3.6 million in permanent tax-exempt bonds; $26.7 million in state and federal low-income housing tax credits; and $10.7 million in subsidies from New York State Homes and Community Renewal.
The New York State Office of Parks, Recreation and Historic Preservation has facilitated the use of federal and state historic rehabilitation tax credits that are estimated to provide nearly $14 million in equity.
The project also received an additional $6.4 million in state tax credits after successfully fulfilling requirements of the Department of Environmental Conservation’s Brownfield Cleanup Program.
Additionally, the City of Syracuse contributed $500,000 in HOME funds, Hochul’s office noted.
The factory complex, consisting of several buildings on the city’s North Side, is listed on the National Register of Historic Places. The H.A. Moyer Company was one of the largest industrial employers in Syracuse around the turn of the 20th century, producing carriages, and then later automobiles.
Constructed in several stages, primarily between 1882 and 1909, the factory complex includes brick buildings that were used for manufacturing, storage, and shipping, and also served as company headquarters, per Hochul’s office.
Syracuse University tuition to rise nearly 4% next year
University also boosts financial aid SYRACUSE — The tuition cost for full-time undergraduates at Syracuse University will be higher in the upcoming academic year as the school commits additional resources to help students pay the cost. Syracuse University will increase tuition for full-time undergraduate students by 3.9 percent to $63,710 for the 2024-25 school year.
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SYRACUSE — The tuition cost for full-time undergraduates at Syracuse University will be higher in the upcoming academic year as the school commits additional resources to help students pay the cost.
Syracuse University will increase tuition for full-time undergraduate students by 3.9 percent to $63,710 for the 2024-25 school year. The university’s tuition for undergrads in the recently completed 2023-24 school year was $61,310.
In announcing the tuition hike, Syracuse also notes that its 2024-25 budget will include $372 million in student financial aid through financial aid, grants, scholarships, and other assistance, per the university’s May 20 announcement. That represents an 8 percent increase over the prior year, the university noted.
“We are focused on creating opportunity for and providing access to talented students from across the socioeconomic spectrum,” Ryan Williams, VP for enrollment services, contended in the announcement. “Our historic commitment to financial aid ensures that Syracuse University continues to be a place where students from a variety of backgrounds can live, learn and thrive. After receiving a record-breaking number of applications this admissions cycle, we look forward to welcoming a remarkable group of students this fall.”
The Syracuse University board of trustees also recently approved the rates for room and board and fees
Room rates for most full-time new and returning undergraduates will be $10,500; board rates increased 3 percent. The rate, which includes the Orange Unlimited meal plan that “offers greater value and flexibility,” is now $7,880, the university said.
In addition, the student activity fee will remain the same; the residential internet and cable access and service fees are set as $460; the co-curricular fee will be $275; and the health and wellness fee is set at $872, Syracuse University added.
Add in other estimated costs such as books, transportation, and personal expenses and it brings the total cost of attendance for undergrads living on campus to $88,560 for the coming academic year, according to the Syracuse University admissions website. Add in health insurance and the total cost of attendance is pegged at $91,034.
For undergraduates living off campus, the total cost of attendance is estimated at $86,664 for the 2024-25 school year and $89,138 with health insurance.
Le Moyne joins semiconductor workforce development group
SYRACUSE — Le Moyne College says it is now part of a group that will help develop the future workforce for high-tech chip development, such as at the coming Micron plant in northern Onondaga County. The college has joined the Northeast University Semiconductor Network is a partnership involving more than 20 institutions of higher education
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SYRACUSE — Le Moyne College says it is now part of a group that will help develop the future workforce for high-tech chip development, such as at the coming Micron plant in northern Onondaga County.
The college has joined the Northeast University Semiconductor Network is a partnership involving more than 20 institutions of higher education collectively focused on the development of the next generation of the U.S. semiconductor industry’s workforce. The network was formed in 2023 by Micron Technology, Inc. (NASDAQ: MU), the first of three university networks Micron launched and announced last year. Micron is planning to build a semiconductor manufacturing campus in the town of Clay.
“We are proud to join this network and partner with Micron and an incredible list of institutions who, like Le Moyne, demonstrate an ongoing commitment to workforce issues, particularly as it relates to access and opportunity for everyone,” Le Moyne President Linda LeMura said in the school’s announcement. “We have been at the forefront of creating pathways to enable underrepresented people to work towards careers in technology since the 2017 founding of our ERIE21 initiative.”
The Northeast University Semiconductor Network will expand and prepare the next generation of talent “through a framework centered on collaboration, innovation, and problem solving,” per the announcement.
Micron, in partnership with the network institutions, will support efforts to modernize and enhance curriculum by sharing industry-backed technical content, expanding experiential learning programs for greater access to cleanrooms and teaching labs, and bolstering research opportunities for students.
In all these efforts, the Northeast University Semiconductor Network will work to reach more underrepresented students, Le Moyne said.
Bill Brower, special assistant to the president for strategic partnerships, noted the growing relationship Le Moyne is building with Micron including the school’s service on Micron’s Future Ready Working Force Innovation Consortium and its plan to embed Micron’s Chip Camp in its residential ERIE21 Quantitative Thinking Village, Micron’s first-ever residential chip camp.
Le Moyne and Micron also plan to offer two Girls Going Tech programs to Syracuse City School District students on its campus, with one offered in Swahili and one in Arabic.
Le Moyne College is joining other regional schools in the network that include Syracuse University, Cornell University, Clarkson University, the Rochester Institute of Technology, and the University of Rochester.
Other partners in the Northeast University Semiconductor Network include the entire State University of New York and City University of New York systems; Brown University; Carnegie Mellon University; Columbia University; Harvard University; Hofstra University; Massachusetts Institute of Technology; New York University; Penn State University; Princeton University; Rensselaer Polytechnic Institute; Rochester Institute of Technology; University of Maryland, Baltimore County; University of Pennsylvania; and the University of Virginia and Virginia Tech.
DiNapoli audit finds up to $1.5B in improper Medicaid payments to providers
ALBANY — Medicaid managed-care organizations made as much as $1.5 billion in “improper and questionable” payments to health-care providers who did not appear to be enrolled in Medicaid, according to an audit that New York State Comptroller Thomas P. DiNapoli released on June 4. Generally, under federal and state law, providers are “supposed to be
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ALBANY — Medicaid managed-care organizations made as much as $1.5 billion in “improper and questionable” payments to health-care providers who did not appear to be enrolled in Medicaid, according to an audit that New York State Comptroller Thomas P. DiNapoli released on June 4.
Generally, under federal and state law, providers are “supposed to be enrolled,” a process that gives the New York State Department of Health (DOH) assurance that they are “equipped and eligible” to deliver services.
“The deadline for managed care organizations and their providers to comply with enrollment requirements was over five years ago, yet our audit shows payments to providers that are still not enrolled in Medicaid or have been denied,” DiNapoli said in the announcement. “Medicaid is vital to millions of New Yorkers in need of quality health care and the Department of Health must do a better job ensuring the program’s integrity.”
DOH pays for Medicaid in two ways — fee-for-service and managed care. Under fee-for-service, DOH pays Medicaid-enrolled providers directly for health-care services. Under managed care, DOH pays monthly premiums to managed-care organizations (MCOs) for each enrolled Medicaid recipient and in exchange MCOs arrange for services with providers.
Under the federal 21st Century Cures Act, in-network managed-care providers were required to be enrolled in Medicaid by Jan. 1, 2018. Enrollment informs DOH that the providers are licensed, credentialed, and able to provide Medicaid services. MCOs are supposed to terminate providers from their networks who do not enroll in the state’s Medicaid program, DiNapoli’s office said.
After services are provided and paid by MCOs, they then submit claims that report the services to DOH. Auditors reviewed claims from January 2018 through June 2022 and found $1.5 billion in “improper and questionable” claims.
Five MCOs paid $916 million in claims for services by in-network providers whose IDs did not match with a Medicaid-enrolled provider on the date of service.
In addition, $832.5 million in claims were for services by providers whose Medicaid application was denied or had been withdrawn by DOH either because they failed to meet Medicaid program standards or were automatically withdrawn because the application was missing information.
For example, one pharmacy was denied enrollment by OMIG (Office of the Medicaid Inspector General) due to unclean conditions, lack of proper supporting documentation, and expired medications on pharmacy shelves. Yet, it received more than $57 million in MCO payments ($212 million of the $832.5 million was included in the $916 million referenced above.)
Furthermore, $9.6 million in improper MCO payments went to in-network and out-of-network providers who were excluded from — or otherwise ineligible for — the Medicaid program ($548,184 of the $9.6 million was included in the $916 million referenced above.)
MCOs are supposed to maintain a network of providers that can deliver “comprehensive” care to their enrolled population. They submit their contracted providers to DOH’s provider network data system (PNDS) at least quarterly. The data system helps DOH ensure MCOs are meeting requirements of federal and state regulations and the providers are entered into the NYS Provider and Health Plan Look-up website.
DOH also uses PNDS to create error reports for MCOs to identify unenrolled in-network providers.
DiNapoli’s audit found PNDS error reports were “flawed” and did not capture all unenrolled in-network providers. Even when providers were identified on error reports, auditors found MCOs often did not make timely fixes to their submissions to DOH.
For example, one physician was flagged on 12 consecutive error reports for one MCO that indicated the physician was not enrolled. The audit concluded that the MCOs’ lack of response “could be attributed at least in part to inadequate DOH oversight and communication,” DiNapoli’s office said.
DiNapoli’s audit recommended that the state DOH needs to improve its oversight of MCO claim payments; ensure MCOs are following the requirements under the Act; and review the payments and providers the audit identified and take appropriate action, including recovering money where appropriate.
DOH “generally agreed with most” of the audit’s recommendations and said it is examining the audit findings to “determine how to best address the issues raised,” DiNapoli’s office said.
However, in its response, DOH pointed out its limited data “hindered” auditor’s matching of certain providers. DOH’s data limitations highlight that DOH has “not developed the infrastructure to accurately review MCOs’ compliance with the Act,” DiNapoli’s office contended in response.
To illustrate, DOH cited a provider from the audit findings that it said was enrolled, but auditors review of DOH’s records confirmed that it was not.
The audit also suggests that the findings “may have larger implications.” DiNapoli’s auditors reviewed claims from just five MCOs that indicated payments to unenrolled providers — just half of the payments to unenrolled providers identified in the audit period.
Accordingly, DOH’s inability to determine the extent of unenrolled or excluded providers who are still doing business with the state “puts Medicaid patients and taxpayers at risk,” DiNapoli’s office concluded.
SU’s new College of Law dean starts work in early August
SYRACUSE — Syracuse University (SU) says Terence Lau graduated from its College of Law in 1998, and more than a quarter century later, will serve as the school’s 13th dean. The executive committee of the SU board of trustees approved the appointment, which begins Aug. 5, the school said in a June 5 announcement. “We
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SYRACUSE — Syracuse University (SU) says Terence Lau graduated from its College of Law in 1998, and more than a quarter century later, will serve as the school’s 13th dean.
The executive committee of the SU board of trustees approved the appointment, which begins Aug. 5, the school said in a June 5 announcement.
“We are excited to welcome Terence Lau back to Syracuse University,” Gretchen Ritter, vice chancellor, provost, and chief academic officer at Syracuse University, said in the announcement. “His distinguished record and depth of experience as a lawyer and a higher education leader make him an outstanding choice to be the next dean to lead the College of Law.”
Lau succeeds Craig Boise, who concludes his tenure as dean in June after eight years in the position. Under his leadership, the College of Law has launched new programs, established professional partnerships, and generated “growth in research,” per the Syracuse University announcement.
“Craig has been a transformative leader for the College of Law, creating a strong foundation on which future success will be built. I thank him for his service to the college and the University,” Ritter noted.
Lau brings significant legal and higher-education experience to the position, SU said. He comes to Syracuse from California State University, Chico, where he is a professor of management. Lau has held numerous leadership positions at the university, including as dean of the College of Business (2018-2023), where he oversaw nearly 70 faculty and 3,000 undergraduate and graduate students. In that role, Lau shepherded the launch of new online M.B.A. and B.S.B.A. programs, managed successful reaccreditation and led fundraising for a new building. Lau also served as interim dean of the College of Engineering, Computer Science and Construction Management (January 2023-July 2023) and interim provost and vice president for academic affairs (July 2023-February 2024).
Lau previously served as the associate dean for undergraduate programs and a professor of business law at the University of Dayton’s School of Business Administration.
“I’m thrilled to be returning to Syracuse where I received a legal education that transformed my professional life,” Lau said in the Syracuse University announcement. “Syracuse Law launched me to a level of success I didn’t even dream was possible. The college’s unique programs, including the hands-on clinics and first-in-the-nation JDi program, as well as top-ranked trial-advocacy programs, are already distinctive and impactful programs. I look forward to working with the faculty, staff, students, alumni and benefactors, and members of the legal community, to advance the college’s reputation and provide our students with an exceptional legal education.”
Prior to his time in higher education, Lau held leadership roles in government affairs and law.
From 2000-2002, Lau served as director of ASEAN Governmental Affairs for Ford Asia Pacific Operations in Bangkok, Thailand where he represented Ford’s government affairs with company affiliates, industry organizations, and the governments of 10 countries affiliated with the Association of Southeast Asian Nations.
Prior to that, he was an attorney in the International Practice Group for the Ford Motor Company. Lau also served as a judicial fellow at the U.S. Supreme Court, working for the counselor to the chief justice of the United States, from 2006-2007, SU said.
Lau has published numerous articles on the legal environment of business and is a former editor-in-chief of the American Business Law Journal. He is co-author of “The Legal and Ethical Environment of Business”, published by Flat World Knowledge and now in its fifth edition.
The dean search committee, convened by Ritter in December, was co-chaired by Todd Berger, professor of law and director of advocacy programs, and Nina Kohn, a professor of law.
“I greatly appreciate the hard work that Nina, Todd and the committee members put into recruiting such a talented leader for the College of Law,” Ritter said.
Children’s Home of Jefferson County appoints finance director
WATERTOWN — The Children’s Home of Jefferson County (CHJC) appointed Rosemary Poindexter as its new finance director, the organization recently announced. Poindexter brings a wealth of experience and a diverse background to her new role, including serving for five years in the Army as a light-wheel vehicle mechanic and as controller of Catholic Charities of
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WATERTOWN — The Children’s Home of Jefferson County (CHJC) appointed Rosemary Poindexter as its new finance director, the organization recently announced.
Poindexter brings a wealth of experience and a diverse background to her new role, including serving for five years in the Army as a light-wheel vehicle mechanic and as controller of Catholic Charities of Onondaga County, Toomey Residential and Community Services, Lourdes Camp, and Catholic Charities of Oswego County.
She holds a bachelor’s degree in accounting and MBA degree from SUNY Oswego.
Poindexter’s appointment reflects CHJC’s ongoing effort to attract talent dedicated to the organization’s goals and mission of creating opportunities to enhance lives, the nonprofit said in a release.
Founded in 1859, CHJC provides services for children, youth, and families including residential, foster care, and community-based programs.
CCBLaw of Syracuse combines with Lippes Mathias of Buffalo
SYRACUSE — The Buffalo–based law firm of Lippes Mathias LLP has entered the Syracuse market after CCBLaw — a Syracuse law firm known for its work with health care, business, and labor and employment clients — combined with it. Eleven attorneys (including two set to be admitted on June 17), along with eight support staff
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SYRACUSE — The Buffalo–based law firm of Lippes Mathias LLP has entered the Syracuse market after CCBLaw — a Syracuse law firm known for its work with health care, business, and labor and employment clients — combined with it.
Eleven attorneys (including two set to be admitted on June 17), along with eight support staff members, have joined Lippes Mathias as part of the move, per the June 3 announcement. CCBLaw operates at 507 Plum St. in Syracuse.
Eight of the 11 CCBLaw attorneys are now partners in Lippes Mathias, Alexander Dean, communications manager for Lippes Mathias, tells CNYBJ in an email. They include Michael Compagni, Marc Beckman, Allison Cherundolo, Stephen Cohen, Maureen Dunn McGlynn, Bruce Smith, Laura Spring, and Bruce Wood.
Beckman, a founding member of CCBLaw, will co-lead Lippes Mathias’ health-care practice team alongside Brigid Maloney, a partner with Lippes Mathias.
With this combination, Lippes Mathias now has 195 total lawyers with 158 support staff and 15 offices across the country.
“When we execute our growth vision, we continue to emphasize the right cultural synergies, and the match with CCBLaw is no exception,” Kevin Cross, Lippes Mathias’ managing partner and chairman, said in the announcement. “The new Lippes attorneys bring exceptional experience and capabilities that pair perfectly with our health care team — creating one of the largest health care practices outside of New York City. I’m proud to note that this expansion also marks a significant milestone in Lippes Mathias’ growth story as our national footprint of 15 locations now reaches every major New York market.”
CCBLaw provides legal and consulting services to health-care clients, including group medical practices, private practice physicians, dentists, and allied health professionals, hospitals, ACOs, physician organizations, independent practice associations, ambulatory surgery centers, and other facilities throughout the U.S., per the Lippes Mathias announcement.
“This is the right move at the right time, compounding value and opportunity for both groups,” Compagni, former CCBLaw managing member and new Syracuse office leader, said in a statement. “Our entire team is excited to join Lippes Mathias — well-known and regarded for its people-first approach to the business of law. Lippes’ emphasis on culture creates an environment where attorneys and staff thrive. We’re thrilled to be a part of a growing firm that is doing it differently.”
Madison County board reappoints county administrator to 4th term
WAMPSVILLE — The Madison County Board of Supervisors recently reappointed Mark Scimone as Madison County administrator for his fourth term in the role. Scimone, who was first appointed in 2013, serves as the county’s chief administrative officer. In that position, he is responsible for the overall administration of county government and coordinates staff services to
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WAMPSVILLE — The Madison County Board of Supervisors recently reappointed Mark Scimone as Madison County administrator for his fourth term in the role.
Scimone, who was first appointed in 2013, serves as the county’s chief administrative officer. In that position, he is responsible for the overall administration of county government and coordinates staff services to the board of supervisors, the board chair, and its committees.
“Mark is essential to the success of Madison County,” Madison County Board Chairman Joseph J. Pinard said in a release. “I want to thank Mark for his hard work and dedication to our community. He keeps the county running day to day and moving in the right direction toward a better future. He not only works closely with the board and our partners locally; however, he also has great connections to counties across New York state and the nation.”
Scimone’s accomplishments over the past four years including leading county department heads and staff through the pandemic and recovery while letting departments decide what is best for their staff and how they provided services including hybrid working options and utilizing technology.
He also worked with the finance department, treasurer’s office, purchasing office, and county attorney’s office to streamline processes to increase efficiency and save money.
As chair of the New York State Association of Counties Employee and Labor Relations Committee, Scimone and others are working to streamline the civil service system to create more flexibility in hiring and make it easier for counties to recruit employees, the release stated.
Scimone encourages departments to look at opportunities for shared-service initiatives between the county, towns, villages, schools, and the City of Oneida to provide additional services, shared technology, and monetary savings. To date, the county has saved more than $1 million through shared services.
Scimone led the county through the grant process resulting in the county receiving a $10.1 million U.S. Department of Agriculture Rural Development ReConnect Grant to improve high-speed internet accessibility in the county. The project to expand the fiber network in the county breaks ground this summer and will connect more than a thousand homes and businesses to high-speed internet. The county has also applied for a $29 million state ConnectAll grant that would add an additional 1,700 homes.
Over the next four years, Scimone is focusing on housing and building development to position Madison County to take advantage of the Micron chip facility coming to the region.
He also hopes to update the county’s “Success Plan” actionable guidebook for achieving goals that was adopted in 2017.
“I am grateful to the board of supervisors for reappointing me to the position of county administrator for another four years,” Scimone said in the release. “A lot has changed in my tenure with the county, and we have much more to do. I look forward to working with our department heads, staff, and the board to find ways to continue to improve operations at the county as well as provide the highest level of services to our residents.”
The Madison County Board of Supervisors says it established the Office of the County Administrator in 2008 to provide for a clear delineation of responsibility and authority between the legislative function of the Board of Supervisors and that of the Madison County government management structure.
Ask Rusty: How will my SS WEP Reduction be Calculated?
Dear Rusty: I don’t understand exactly how the Windfall Elimination Provision (WEP) works for my situation. I turned age 62 in 2017 and am currently still working in a “non-covered” job, not paying into Social Security (SS), but from which I will get a government pension when I retire. I began collecting Social Security at
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Dear Rusty: I don’t understand exactly how the Windfall Elimination Provision (WEP) works for my situation. I turned age 62 in 2017 and am currently still working in a “non-covered” job, not paying into Social Security (SS), but from which I will get a government pension when I retire. I began collecting Social Security at my full retirement age in 2021 and am now collecting $1,507 per month, thanks to the cost-of-living adjustments since I started. Will my SS benefit be reduced by $587 if I retire this year?
Signed: Confused by WEP
Dear Confused: You’re certainly not alone to be confused by the Windfall Elimination Provision, and your situation is somewhat special because you started your SS benefits before taking your “non-covered” government pension. And, unfortunately, most tools and charts that suggest how much WEP will reduce your Social Security benefit don’t accommodate that nuance very well.
In your case, when you claimed Social Security at your full retirement age (FRA), you were awarded the full benefit you were entitled to, unreduced by WEP because you were not yet collecting your non-covered government pension. You were able to collect your full SS amount and receive each year’s full cost-of-living adjustments (COLA) to those higher amounts. What actually happens is that people’s primary insurance amount (PIA) is first determined at age 62, and the Social Security Administration (SSA) applies an annually awarded COLA to their PIA (primary insurance amount), even if they’re not yet receiving benefits. You received your full PIA, including COLA, because you claimed at your full retirement age. But when you start collecting your pension from your non-covered government job, the Windfall Elimination Provision will kick in and reduce your Social Security benefit.
The amount of WEP reduction depends on how many years you had contributed to Social Security from “substantial” earnings but, with 20 or fewer years, the maximum WEP reduction is determined by the year you turn 62 and doesn’t change. Since you turned 62 in 2017, your maximum WEP reduction, according to the SSA’s process, is $442.50 — lower than the $587 you suspect.
Nevertheless, due to the way the SSA calculates the WEP reduction, the reduction from your current amount will seem larger than the WEP maximum. And that’s because of the way the SSA applies the WEP reduction to your benefit. The agency starts by first removing all cost-of-living increases since you were age 62 from your primary insurance amount. It will then take your PIA (sans COLA) and subtract $442.50 (if you have more than 20 years of substantial SS-covered earnings they will subtract less), and then the SSA will reapply all the cost-of-living increases since you were 62 to your WEP-reduced PIA. What just happened, in effect, is that your previous (pre-WEP) COLA increases were removed from your PIA, and those same COLA percentages were reapplied to your smaller WEP-reduced PIA, to arrive at your new monthly benefit amount under the Windfall Elimination Provision. And that new amount will be lower than your previous SS benefit amount by more than the published maximum WEP reduction for the year you turned age 62.
A word of caution: Timely notification to the Social Security Administration of your non-covered pension is very important. As soon as you receive your non-covered pension award letter, deliver it to your local Social Security office and request a WEP recalculation of your SS retirement benefit. The WEP recalculation will likely take months to process, during which time you will continue to receive your higher non-WEP SS benefit. That means you will be overpaid for the period between when your non-covered pension started and the month your new WEP SS payment began, and that overpayment must be refunded to the SSA.
Russell Gloor is a national Social Security advisor at the AMAC Foundation, the nonprofit arm of the Association of Mature American Citizens (AMAC). The 2.4-million-member AMAC says it is a senior advocacy organization. Send your questions to: ssadvisor@amacfoundation.org.
Author’s note: This article is intended for information purposes only and does not represent legal or financial guidance. It presents the opinions and interpretations of the AMAC Foundation’s staff, trained, and accredited by the National Social Security Association (NSSA). The NSSA and the AMAC Foundation and its staff are not affiliated with or endorsed by the Social Security Administration or any other governmental entity.
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